So the government doesn’t have enough cash to fund it’s budget and provide adequate services for everyone. They try to raise taxes on social media and mobile money and everyone is up in arms. To most people the negative reaction on social media is where it all ends. So what if instead of just the negative commentary on social media you instead make some cash from the dilemma gov’t finds itself in.
When pressed against the wall governments around the world respond typically in 2 ways. One is they cut expenditure! This is problematic in a populist democracy where to get votes you need to spend, create more districts and expand the bureaucracy and have many people employed and eating from the system. Option 2 is to borrow either from international players or locally from the public. International bodies and gov’ts also have their selfish interests and this is usually an expensive option for gov’t.
This is where you come in to exploit the opportunity.
Now you have probably heard of treasury bills and bonds but didn’t care enough to figure out what the hell they were all about. Well this is how governments borrow money from the public to fund their deficit budgets. Government borrows by issuing treasury bill and bonds through Bank of Uganda. You buy the bills and bonds and government pays you interest usually twice a year and the principal at the end of the loan period.
The people who usually benefit most from these investments are the large banks. Say you save your painfully earned one million on a savings account in any of the commercial banks. The bank will hardly pay you any interest. Actually you are more likely to end up with less money in your account after one year. The banks aggregate these savings from various accounts and lend to the gov’t and make a killing for literally doing nothing! They then lend it back to you at crazy interest rates!
A 364 day treasury bill from Bank of Uganda is currently paying about 14% per year. So if you invest UGX 1m for 1 year you earn 140k. Now this 140k may seem small but if compounded over 10 years will add up to a total about UGX 3.7m (principal + interest). If you invest UGX 10m and keep reinvesting it annually you will end up with UGX 37m in 10 years. And remember this is all hustle free and almost guaranteed! Of course the gov’t still taxes you a withholding tax of 20%! Can you imagine lending someone money and they tax you on the interest they are paying you?!! These loans are typically considered risk free because the government can just simply print more money and pay you or simply come up with another creative tax like the social media tax.
All you need to participate is to be above 18 years of age and open up an account with Bank of Uganda through your commercial bank and start investing with a minimum of UGX 100k. That is it!
So the next time you are angry with the government, lend them some money!!!
Unlock your true potential 